Hydro Energy

Hydroenergy

In Armenia there are practically no fossil fuels and water energy resources are considered to be own energy resources.

The Rivers of Armenia are concerned to the Caspian Sea Basin. Generally, all of them are tributaries of the Kura river. Only the rivers flowing into lake Sevan from the bordering mountain slopes stand out from them. 73.5 % of the territory of Armenia is the Araks river basin. There are more than 200 rivers and streams in Armenia the length of each 10 and more kilometers. The river Hrazdan flowing out lake Sevan, the rivers Araks, Vorotan and Debet have the most energy potential.

The potential water energy resources of Armenia are 21,8 bln.kWth, including big and middle size rivers - 18,6 bln.kWth, and small rivers- 3,2 bln.kWth.

Till the First World War 9 small hydro power plants (SHPP) operated in Armenia with total capacity of 2155 kW. In 1913 the production of energy was 5,1 mln. kWth.

In Armenia design and construction of hydroelectric and water economic objects began in 1920s. In 1920 -1930s hydro power plants (HPP) N1 and N2 of Yerevan and HPP of Gyumri were constucted. In 1927 the construction of Dzoraget HPP began. The first aggregate of Dzora HPP with capacity of 7400 kW was put in operation on 1932, in a year it worked with capacity of 22320 kWt, in terms of water quantity – with average annual capacity of 14920 kWt. Creation of powerful energy base became possible after development of the Hrazdan river and lake Sevan.

At present hydro resources are the most widely used among the renewable energy resources. Utilization of the whole hydro potential will be obtained by using the existing two major HPPs cascades (Sevan-Hrazdan HPPs Cascade and Vorotan HPPs Cascade), construction of three new middle size HPPs and utilization of small HPPs potential.

Vorotan HPPs cascade consists of 3 hydro power plants, placed on the River Vorotan in the territory of Syunik region, and they use both the river and streams waters. HPPs Cascade consists of Spandaryan (76 MW), Shamb (171 MW) and Tatev (157 MW) HPPs with 404 MW total installed capacity and 1.16 bln.kWth annual design generation of electricity.

Small HPPs in Armenia

Construction of SHPP in Armenia is a leading course of action towards development of renewable energy sector and securing of energy independence in Armenia. The majority of SHPPs designed, under construction or operation in RA are derivational stations on natural water flows. As of the 1st of January 2017, electricity was generated by 178 small HPPs, with about total 328 MW installed capacity and 880 million kWh annual average electricity actual supply. In 2016 the generation of the electricity from small HPPs was around 957 million kWh, which is about 13% of the total generated electricity in Armenia (7315 million kWh). As of the 1st of January, 2017 and according to the provided licenses, 39 additional SHPPs are under construction, with about total projected 74 MW capacity and 260 million kWh electricity annual supply.

Summarizing the legislative acts, it should be mentioned that the Republic of Armenia has created numerous mechanisms, promoting the use of renewable energy sources, for example:

According to the article 59 of the “Law on Energy” of RA, adopted on 7 March 2001, it is guaranteed the purchase of the whole electricity generated by renewable energy sources according to the established order -15 years for SHPPs, and 20 years for solar, wind, biomass and geothermal.

By the decision of the Public Services Regulatory Commission the procedure for

determining the electricity tariff produced by the power plants using the renewable energy sources was approved. According to it, the tariff for the hydro energy is set on an annual basis. According to the decision of the Public Services Regulatory Commission N 128-N dated 25 May, 2016 the tariff for electricity, produced by SHPPs, constructed on natural steams amounts 23.753 ARMD / kWh excluding VAT, for electricity, produced by SHPPs, constructed on irrigation systems - 15.832 ARMD / kWh excluding VAT, for electricity, produced by SHPPs, constructed on drinking water canals - 10.556 ARMD / kWh excluding VAT.

In accordance with the above-mentioned procedure, in the end of every year the tariff for the hydro energy is indexed due to the fluctuations in the national currency of Armenia against the USD for a certain period of time and due to the changes of consumer prices in the Republic of Armenia.

This tariff is determined and revised due to the definite method adopted by the Commission decision N 88-N dated 22 April, 2015.